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NC lawmakers vote to pause 41-cent fuel tax through November

North Carolina lawmakers approved a temporary suspension of the state’s 41-cent-per-gallon motor fuel tax as gasoline prices average $4.12. The bill would also use reserve funds to replace the lost revenue and now awaits Gov. Josh Stein’s signature.

NC lawmakers vote to pause 41-cent fuel tax through November
North Carolina lawmakers approved a temporary suspension of the state’s motor fuel tax Wednesday, a move intended to ease costs for drivers as gasoline prices climb across the state. The bill would halt the 41-cent-per-gallon tax through Nov. 30, 2026. It passed the House Wednesday afternoon and cleared the Senate unanimously shortly before 4 p.m. Gov. Josh Stein has indicated support, and the measure now awaits his signature. The General Assembly convened a special session Wednesday to address fuel prices, which averaged $4.12 per gallon in North Carolina, according to AAA. The legislation also waives penalties through Dec. 30 for highway use of dyed diesel fuel, which is designated for agricultural use. To make up for revenue lost during the tax pause, the bill directs the state to transfer money from its Stabilization and Inflation Reserve. The measure does not specify how much drivers will save at the pump; the effect on prices will depend on how the tax suspension is reflected in retail fuel costs. Fuel prices have risen sharply in 2026 amid disruptions affecting oil shipping routes, Middle Eastern refineries and supplies tied to the Russia-Ukraine war. Suspending the tax offers temporary relief to motorists, while drawing on reserves means the state will use funds otherwise available for other budget needs.

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